Title:
Tax Administration in Nigeria: A Systematic Literature Review

Authors:
Roseline N. Azubuike (Ph.D); Honesta C. Anorue (Ph.D); Olaide D. Adeleye; and Ediongsenyene A. Ekanem, Nigeria

Abstract:

Tax administration is vital for national development, acting as the principal vehicle through which governments generate revenue for economic growth and public service delivery. In Nigeria, tax collection is administered by the Federal Inland Revenue Service (FIRS), State Internal Revenue Service (SIRS), and Local Government Revenue authorities. These entities gather funds to support crucial infrastructure, healthcare, education, and other critical services. However, Nigeria faces significant challenges in tax administration, including rampant tax evasion, a substantial untaxed informal sector, corruption, and complex tax legislation. These issues hinder the government's capacity to generate sufficient revenue for national development. This systematic review analyzes the existing literature on tax administration in Nigeria from 2018 to 2024, addressing three key questions: (i) What are the primary obstacles in tax administration? (ii) How does tax administration influence government performance and revenue generation? (iii) What measures have been suggested or implemented to improve tax administration efficiency? Through a comprehensive search of databases such as Research gate, PubMed, JSTOR, Google Scholar, and others, this study finds noteworthy discoveries linked to recent tax reforms, such as the implementation of the Tax Identification Number (TIN) system and the Voluntary Assets and Income Declaration Scheme (VAIDS), have had a mixed impact on revenue generation. The use of technology, including e-tax systems, has enhanced tax compliance but faces challenges related to internet connectivity and cyber security. Additionally, the informal sector remains largely untaxed, posing a significant challenge to expanding the tax base. The implications of these findings highlight the need for further reforms in tax administration. Streamlining tax regulations, enhancing technological infrastructure, combating corruption, and improving taxpayer education are essential steps for increasing revenue collection. Addressing these challenges will not only boost revenue generation but also promote sustainable economic growth in Nigeria. Policymakers and stakeholders can leverage these insights to build a more efficient and transparent tax system, thereby contributing to overall economic and social stability.

DOI: https://doi.org/10.51505/IJEBMR.2024.8918